Council clears up Kaltimex issue

July 18, 2021 Metro BLISTT

The city council last Monday met with city executive officials to cast light on several issues arising from the request of Mayor Benjamin Magalong to confirm the termination of the contract between the city government and Kaltimex Energy Philippines Inc. Councilor Betty Lourdes Tabanda apprised Mayor Magalong, City Administrator Bonifacio dela Pena, and OIC City Legal Officer Richard Dayag about the council’s action on the possible termination of the Kaltimex contract.
During the regular session on January 24, 2021, the city council required the company to submit conclusive documents to convince the legislators that the company has the capability to rehabilitate and operate the three city owned mini-hydro-power plants located at Asin, Tuba, Benguet.
In response to the council’s request, Kaltimex submitted a letter of intent to continue the contract, proof of financial capability of P1.2 billion from Landbank Bukidnon Lending Center, initial timetable for six months, program of works including a detailed cost for a new Plant 1 HEP, and an updated company profile with the Security and Exchange Commission registration.
The city council’s Committee on Human Rights and Justice chaired by Tabanda referred the documents to the City Administrator, City
Engineering Office, City Building and Architecture Office, General Service Office, and all the members of the Local Finance Committee for evaluation.
“We forwarded these documents to the concerned offices as I don’t think the council members are technically competent to review them,” Tabanda pointed out. She stressed that the action of the council was part of the due process. To date, the committee has yet to receive the requested reports from the concerned executive offices.
Magalong and dela Pena explained the executive department had decided it would not evaluate the company’s capability to operate the hydro power plants but would stand firm with its contention that the company violated the compromise agreement, thus the non-response of the executive offices to the council’s request for evaluation.
It can be recalled that, in 2018, the city government under the administration of then Mayor Mauricio Domogan, had sued Kaltimex due to the latter’s failure to fulfill its obligations.
However, a compromise agreement was signed in February 2020 between the city government under the current administration and Kaltimex. As part of the agreement, Kaltimex paid the liquidated damages worth P13.6 million and reimbursed the city government’s filing fee of P605,000.00.